MTN and Airtel Nigeria generated N3.67tn from data and voice services in H1 2024, amid rising operational costs and growing data demand.

[dropcap]M[/dropcap]TN and Airtel Nigeria generated a combined revenue of N3.67tn from data and voice services in the first half of 2024.

MTN reported N1.27tn in revenue, while Airtel achieved N2.4tn, highlighting the growing demand for data services. Both companies face operational challenges, such as rising diesel costs and a weakening naira.

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MTN Nigeria and Airtel Nigeria collectively generated about N3.67tn from their data and voice services in the first half of 2024.

MTN Nigeria, the country’s largest telecom operator with nearly 80 million subscribers, reported revenue of N1.27tn during this period.

Data services saw significant growth, contributing N726.6bn, a 55% increase compared to the same period in 2023.

Voice services also saw an increase in revenue, growing from N474.1bn to N541.3bn year-on-year. MTN attributed this growth to improved service quality and the rising demand for data services. Price optimisation strategies initiated in Q4 2023 further boosted their revenue.

Airtel, with over 60 million subscribers, generated $229m in revenue for Q2 2024, consisting of $117m from data services and $112m from voice services.

Although voice revenue declined by 55.8%, constant currency analysis showed a 21.6% increase. Similarly, while data revenue declined by 48.6%, constant currency figures revealed a 41.3% increase, underscoring growing internet demand.

Despite these revenues, both MTN and Airtel face high operational costs, particularly due to diesel consumption to power their extensive infrastructure.

The companies spent about N570bn in the first eight months of 2024, partly due to high diesel prices. Both operators are now exploring renewable energy sources to manage rising costs.

The companies reported losses for the period, with MTN suffering a loss of $519.1bn and Airtel posting an $89m loss for the fiscal year ending March 2024. Airtel, however, recorded a $31m profit in Q2, despite foreign exchange losses.